G20 vows to boost global economic growth by 1.8%

GMT
08:40 2014
Sunday ,21
September

G20 finance summit

Sydney - XINHUA

The G20 finance summit ended Sunday in Cairns, Australia with a commitment to a 1.8 percent growth target designed to boost the world economy by 2 trillion U. S. dollars.
The world's most powerful finance ministers announced plans to add 1.8 percent to their combined economic output, a move that will create millions of jobs.
Australian Treasurer Joe Hockey, who was chairing the G20 meeting, said the IMF and OECD have looked at over 900 measures put forward by countries, and estimated that these efforts could lift global GDP by 1.8 percent through to 2018.
"We want to create the environment for private sector-led growth, and provide our citizens with more jobs and better living standards," he said.
Hockey said investment in infrastructure was one of the core G20 growth strategies.
"We have focused on lifting investment in infrastructure because of its potential to address demand weakness. It is also a key driver for improving productivity," he said.
"We have now agreed to progress a multi-year Global Infrastructure Initiative. This initiative consists of an integrated set of actions to increase quality infrastructure investment across the G20 and beyond.
"We have committed to developing a database of infrastructure projects to help match potential investors with projects."
Hockey said the G20 meeting agreed that monetary policy should continue to support the economic recovery, and that it should particularly address deflationary pressures where these are evident.
"Ministers and central bank governors are all too aware of the potential for a buildup in financial risks arising from prolonged, low interest rates," he said.
"All are committed to closely monitoring these risks and building even stronger economic policy frameworks, which are the ultimate defence against the damaging impact of renewed financial market volatility."
Hockey said the G20 was unified in its mission to modernise global tax rules and close gaps that have emerged in recent years.
These new tax rules are aimed at multi-national companies who are using legal loopholes to avoid paying tax.
On Saturday, OECD Secretary General Angel Gurria released a series of recommendations that are aimed at cracking down on tax- cheating of big corporations.
Hockey said the G20 had endorsed far-reaching initiatives which will arm its tax authorities with the information that they need to identify tax evaders through the automatic exchange of information using a Common Reporting Standard (CRS).
"We agreed to begin exchanging information through use of the CRS commencing from 2017. This will send a strong deterrence message to tax cheats with immediate effect. We are urging other jurisdictions, particularly financial centres, to match our commitment," he said.
Hockey said improving financial regulation was central to future-proofing of the global financial system against shocks.
"As a result of policy action, our financial institutions are more resilient and less likely to wreak damage on our economies and citizens through costly failures. They have more and better capital, and have more defences against liquidity pressures," he said.
In conclusion, Hockey said the G20 finance summit was a success because its members addressed global growth targets, global infrastructure initiatives, financial sector reform and tax integrity.
"As of today we have committed to over 900 policy initiatives that help to make the economy around 2 trillion U.S. dollars larger within 4 years. This represents millions of jobs," he said.